November 29, 2019
Company name:
Representative:

Inquiries:
Tel:

ES-CON Japan Ltd.
Takatoshi Ito, President &Representative Director(TSE 1st Section, code: 8892)
Minoru Nakanishi, Senior
Managing Director+81-3-6230-9308

Notice on Transfer of Real Estate for Sale to Chuden Real Estate Co., Inc.
ES-CON Japan Ltd. (ES-CON Japan) announces as follows that it has decided on and concluded a saleand purchase agreement for the transfer of the following real estate for sale to Chuden Real Estate Co.,
Inc. (Chuden Real Estate) for temporary ownership (warehousing), assuming the real estate will betransferred to ESCON JAPAN REIT Investment Corporation (ESCON REIT), based on a support
agreement concluded among three companies, namely Chuden Real Estate, ESCON REIT, and ES-CONASSET MANAGEMENT Ltd. (ES-CON AM), a wholly owned subsidiary of ES-CON Japan.
1. Details of Assets to be Transferred
The total transfer price will be 9,515 million yen as described below and the total gain from transfer isscheduled to be 2,676 million yen.
Moreover, the gain from transfer will not be disclosed individually for each property.
Site area
Transfer price
LocationType(total floor area)(million yen)
Yamato-Takada-shi,
17,735 m2 (19,609 m2)
Commercial facility (land, building)
4,025
Nara Prefecture *ownership ratio 50%
22
Sakai-shi,
10,435 m (11,771 m )Commercial facility (land, building)
3,385
Osaka Prefecture*
ownership ratio 50%
Omihachiman-shi,Commercial facility (land)
17,268 m2
970
Shiga Prefecture
Muko-shi,Land lot of commercial facility (land)
1,839 m2
445
Kyoto Prefecture
Ikoma-gun,Land lot of commercial facility (land)
8,486 m2
690
Nara Prefecture
Total
9,515
*ES-CON Japan will retain 50% ownership in the properties located in Yamato-Takada-shi, Nara
Prefecture and Sakai-shi, Osaka Prefecture.
The properties corresponding to the retained 50% ownership are properties for which ES-CON Japan
has granted the right of first refusal to ESCON REIT based on the sponsor support agreement.
2. Overview of Buyer
Trade name
Chuden Real Estate Co., Inc.
Address
2-5 Sakae 2-chome, Naka-ku, Nagoya, Aichi
Representative
Minoru Watanabe, President and Representative Director
Lines of business
Real estate, construction, operation of facilities, environmental greening
Relationship with
Capital relationship
Chubu Electric Power Co., Inc. (Chubu Electric Power),
listed companies
the parent company of Chuden Real Estate, ispresently a major shareholder of ES-CON Japanowning 33.3% of voting rights and ES-CON Japan is anequity-method affiliate of Chubu Electric Power.

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Businessrelationship
Status of relationshipwith related parties

Two employees of ES-CON Japan are seconded toChuden Real Estate.
One employee of Chuden Real Estate is seconded to
ES-CON Property Ltd., a subsidiary of ES-CON Japan.
One employee from Chubu Electric Power, the parent
company of Chuden Real Estate, has assumed theposition of director of ES-CON Japan.
A support agreement has been concluded among
Chuden Real Estate, ESCON REIT and ES-CON AM.
Chubu Electric Power, the parent company of Chuden
Real Estate, falls under the category of related partiesof ES-CON Japan.

3. Schedule of Transfer
Date of resolution at board of directors’ meeting
Date of conclusion of contract
Date of delivery of property

November 29, 2019
November 29, 2019
Fiscal 2020 (scheduled)

4. Impact on Financial Results
As for the impact of the transfer of real estate for sale on the financial results of ES-CON Japan, thetransfer is scheduled to be recorded as sales in the fiscal year ending December 2020 alongside theposting of profits, and there will be no impact on the financial results for the current fiscal year.

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